Taiwan chipmaker UMC sees further growth for sector into 2023
By Sarah Wu
TAIPEI (Reuters) – Taiwanese chipmaker United Microelectronics Corp (UMC) stated on Wednesday it sees continued progress for the business into subsequent yr, at the same time as hovering inflation and recession fears cool demand for shopper electronics.
“After two very sturdy years within the semi market – we name it a supercycle – and hitting the current turbulence and disruption from the market, and after this rising macro uncertainty, increased inflationary price points, we nonetheless foresee the foundry business rising in 2023,” co-president Jason Wang advised an earnings name.
“It will likely be extra average, however it will be one other progress yr.”
UMC, whose purchasers embrace Qualcomm Inc and Germany’s Infineon, benefited from a worldwide chip scarcity that has saved chipmakers’ order books full over the previous two years.
Whereas firms akin to Micron Expertise Inc have lately signalled waning demand for chips, prompting investor concern that the business might slide right into a down cycle, UMC stated secure demand in its networking, industrial, and auto segments helped offset softening demand for smartphones and notebooks.
“We foresee our Q3 loading might be full,” Wang stated, as UMC reported a 41.5% year-on-year leap in second-quarter income to a document excessive of T$72.06 billion ($2.4 billion).
“Regardless of the rising uncertainty of the macro outlook, our view of the 2022 foundry business progress of 20 p.c plus stays unchanged. And our goal is to develop in line or increased than the foundry business.”
Earlier this month, Taiwan’s TSMC, the world’s largest contract chipmaker, forecast income progress for the present quarter doubtlessly at its highest in 10 quarters, citing surging long-term demand, together with for chips utilized in knowledge centres and electrical autos.
U.S. chipmaker Intel Corp stated this month it had knowledgeable prospects of plans to extend costs for a lot of of its chip merchandise as a consequence of rising prices.
($1 = 29.9460 Taiwan {dollars})
(Reporting by Sarah Wu; Modifying by David Holmes)
